Prehistoric settlers arrived on the continent from Southeast Asia at least 40,000 years before the first Europeans began exploration in the 17th century. No formal territorial claims were made until 1770, when Capt. James COOK took possession of the east coast in the name of Great Britain (all of Australia was claimed as British territory in 1829 with the creation of the colony of Western Australia).

Six colonies were created in the late 18th and 19th centuries; they federated and became the Commonwealth of Australia in 1901. The new country took advantage of its natural resources to rapidly develop agricultural and manufacturing industries and to make a major contribution to the Allied effort in World Wars I and II. In recent decades, Australia has become an internationally competitive, advanced market economy due in large part to economic reforms adopted in the 1980s and its location in one of the fastest growing regions of the world economy. Long-term concerns include aging of the population, pressure on infrastructure, and environmental issues such as floods, droughts, and bushfires.

Australia is the driest inhabited continent on earth, making it particularly vulnerable to the challenges of climate change. Australia is home to 10 per cent of the world's biodiversity, and a great number of its flora and fauna exist nowhere else in the world. In January 2013, Australia assumed a nonpermanent seat on the UN Security Council for the 2013-14 term.

In 2007, Australia and Timor-Leste agreed to a 50-year development zone and revenue sharing arrangement and deferred a maritime boundary; Australia asserts land and maritime claims to Antarctica; Australia's 2004 submission to the Commission on the Limits of the Continental Shelf (CLCS) extends its continental margins over 3.37 million square kilometers, expanding its seabed roughly 30 percent beyond its claimed exclusive economic zone; all borders between Indonesia and Australia have been agreed upon bilaterally, but a 1997 treaty that would settle the last of their maritime and Exclusive Economic Zone (EEZ) boundary has yet to be ratified by Indonesia's legislature; Indonesian groups challenge Australia's claim to Ashmore Reef; Australia closed parts of the Ashmore and Cartier reserve to Indonesian traditional fishing.

Refugees (country of origin): 8,368 (Afghanistan) (2013).

Tasmania is one of the world's major suppliers of licit opiate products; government maintains strict controls over areas of opium poppy cultivation and output of poppy straw concentrate; major consumer of cocaine and amphetamines.

Location: Oceania, continent between the Indian Ocean and the South Pacific Ocean. The world's smallest continent but sixth-largest country; the largest country in Oceania, the largest country entirely in the Southern Hemisphere, and the largest country without land borders; the only continent without glaciers; population concentrated along the eastern and southeastern coasts; the invigorating sea breeze known as the "Fremantle Doctor" affects the city of Perth on the west coast and is one of the most consistent winds in the world.